Provides that certain deductions allowable under the internal revenue code related to certain types of property and domestic research or experimental expenditures shall be added to federal adjusted gross income.
Impact
If enacted, A10273 will require taxpayers to add back certain deductions to their federal adjusted gross income, which may affect how businesses and individuals calculate their tax liabilities. This change could potentially increase tax obligations for some taxpayers who currently benefit from these deductions while also creating a uniform taxation framework that aligns with federal standards. Additionally, the alterations to the treatment of research or experimental expenditures may incentivize more businesses to engage in research within the state, as tax liabilities will clearly delineate how these expenditures are handled.
Summary
Bill A10273, introduced in the New York Assembly, aims to amend state tax law by modifying how certain deductions allowable under the internal revenue code are calculated in determining federal adjusted gross income. Specifically, the bill modifies terms relating to qualified production property and includes provisions regarding foreign and domestic research or experimental expenditures. The overall intent is to establish clearer guidelines on how these deductions should be treated for taxpayers in New York starting from the taxable years beginning after January 1, 2025.
Contention
Notable points of contention emerged surrounding the implications of the bill, specifically regarding its potential impact on businesses that rely heavily on deductions related to production and research expenditures. Critics argue that by making these deductions less favorable, the state might inadvertently hinder innovation and investment in critical sectors. Furthermore, the amendments could disproportionately impact small businesses compared to larger corporations who may have the resources to adapt to these changes. Supporters contend that the bill simplifies the tax code and encourages compliance with federal regulations.
Same As
Provides that certain deductions allowable under the internal revenue code related to certain types of property and domestic research or experimental expenditures shall be added to federal adjusted gross income.
Provides that certain deductions allowable under the internal revenue code related to certain types of property and domestic research or experimental expenditures shall be added to federal adjusted gross income.
Adds certain gains with respect to small business stock excluded pursuant to section 1202 of the Internal Revenue Code as an increase to adjusted gross income.
Adds certain gains with respect to small business stock excluded pursuant to section 1202 of the Internal Revenue Code as an increase to adjusted gross income.
Insurance; taxable income and adjusted gross income; deduction for contributions to certain qualified accounts; tax exemption; deduction based on certain expenditures; effective date.
Removing obsolete reference to global intangible low-taxed income provided for under the federal internal revenue code in determining Kansas adjusted gross income.